BILL ANALYSIS Ó AB 297 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 297 (Chesbro) As Amended July 2, 2013 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |75-0 |(May 2, 2013) |SENATE: |37-0 |(September 3, | | | | | | |2013) | ----------------------------------------------------------------- Original Committee Reference: HEALTH SUMMARY : Authorizes a primary care clinic to submit verification of certification from the Accreditation Association for Ambulatory Health Care (AAAHC) or any other accrediting organization recognized by the Department of Public Health (DPH) to the Licensing and Certification (L&C) Division of the DPH for purposes of data collection and extraction for licensing and certification fee calculations. The Senate amendments additionally authorize a primary care clinic to submit verification of certification from any other accrediting organization recognized by DPH. EXISTING LAW authorizes primary care clinics to submit verification of Joint Commission on Accreditation of Healthcare Organization (JCAHO) certification to the L&C Division within DPH for entry into the electronic Licensing Management System for purposes of data collection and extraction for licensing and certification fee calculations. FISCAL EFFECT : None COMMENTS : The California Primary Care Association (CPCA) is the sponsor of this bill. According to the author and CPCA, this is a technical cleanup bill to reflect current practice. Adopting verification from these entities in lieu of DPH site inspections expedites the process and reduces state costs that otherwise would be required for the site inspections and data collection. The fees are collected annually, and re-inspection is required every three years. Primary care clinics are required to be licensed through the authority of the DPH. Community clinics and free clinics are two types of primary care clinics. Examples of community AB 297 Page 2 clinics are federally qualified health centers (FQHCs) and rural health centers. DPH utilizes standards defined in state and federal law and regulations to evaluate health facility compliance. The licensing and certification process is intended to both ensure public safety at community clinics, and to prevent fraud and abuse of the Medi-Cal and Medicare billing systems. There are numerous regulations that clinics must meet regarding physical plant and facility building standards, pharmaceutical storage and administration, data reporting, basic services, and staffing in order to obtain and maintain a primary care clinic license. The clinic must have the following documents: clinic operational policies and procedures, transfer agreements, service agreements, written administrative policies, employee records, employee health examinations and health records, emergency management plans, and a quality assurance evaluation policy. The California Health and Safety Code, the California Code of Regulations, and other state and federal regulations contain specific requirements for primary care clinics. Currently DPH licenses FQHCs that comply with state safety standards. DPH conducts site inspections and compiles information to verify and certify compliance with those safety standards, and also to determine the appropriate calculation of the DPH's licensing and certification fees. Existing law provides that in lieu of a DPH site inspection, a FQHC can submit certification from the JCAHO verifying that the FQHC was inspected by JCAHO and is in compliance with the state's safety standards. Since the statute was enacted, DPH accepts verification of compliance from an additional accreditation entity, the AAAHC. Accrediting entities are independent non-profit organizations. Accreditation is not required for an FQHC to operate, but it does certify that the FQHC has met state standards to assure quality services and facilities. FQHCs contract with an accrediting entity for inspection and verification of compliance with state standards. Analysis Prepared by : Rosielyn Pulmano / HEALTH / (916) 319-2097 FN: 0001457 AB 297 Page 3